8.30 : Weak external factors continues. SO and CO are trading 15 and 2% lower. FCPO Sep09 is seen stuck at the lower ranges again, within 2100-2150, a danger of a fresh breakdown looming.
Resistance- Support
2200-2150
2230-2120
2250-2100
2275-2070
last week.....FCPO revisited 2100 for the first time since xxx as prices retest major support level in a week that saw a weaker commodity market as players took a cautious stance on global economy recovery story. For the week, FCPO//CO/SO lost 6%/6%/4% respectively.
Market remains technically negative-bias and possibly shifting lower to a new trading range of 2000-2100 this week. FCPO Sep09 strong bounce from 2100 lows on Friday was nothing more than a weekend short covering as losses were deemed excessive. Unless external factors improve, FCPO will continue to trap inside a downtrend channel. Another breach of 2100 would bring about a new leg down towards 2000. The best case for bulls this week is to see the market consolidates within the horizontal support lines. Sentiment will turn neutral if Sep09 recovers back above 2200.
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